If nominal GDP is 2700 and the money supply is 900, what is velocity?
a. 25
b. 13.5
c. 3
d. 0.33
c. 3
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Knowledge, skills, and experience that make an individual more productive and able to earn a higher income are known as:
A) mental capital. B) human capital. C) sweat equity. D) intangible capital.
Which of the following is true?
a. Monetary policy influences long-term real interest rates more than short-term interest rates. b. Short-term interest rates are primarily determined by real factors and the expected inflation. c. A shift to a more expansionary monetary policy will tend to reduce short-term interest rates. d. A shift to a more expansionary monetary policy will tend to reduce the expected rate of inflation in the future.
A decline in housing prices can help to push the economy into a recessionary gap
Indicate whether the statement is true or false
Suppose the governments of Mexico and the United States agree to a fixed exchange rate. Describe some of the options available to the Mexican government if the peso was persistently overvalued, creating a surplus of pesos on the foreign exchange market. Be sure to explain how each of these options would be expected to impact the supply and/or demand for Mexican pesos